As reported by Yahoo!Finance, Floyd Mayweather is making a significant entry into Manhattan's multifamily real estate market with a substantial transaction.
The retired boxing champion has reportedly entered into a contract to acquire a vast affordable housing portfolio valued at $402 million, encompassing 1,000 units across more than 60 buildings, as confirmed by sources familiar with the negotiations.
The seller of this impressive portfolio is Josh Gotlib of Black Spruce Management, although the firm has opted not to provide any comments at this time.
This multifamily deal, which primarily targets properties located in Upper Manhattan, is poised to become one of the largest transactions in the city this year. Sources indicate that a portion of the portfolio was finalized on Wednesday, with the remainder expected to conclude by the fourth quarter of this year or early 2025.
Notably, the only transaction this year with a greater purchase price was Michael Stern’s $672 million sale of 9 Dekalb Avenue to lender Silverstein Capital Partners, which was classified as a distressed transaction.
Some assets within the Black Spruce portfolio have been granted Article XI status, providing a tax exemption for up to 40 years for developments that are at least two-thirds affordable housing.
In 2021, Black Spruce was focused on recapitalizing an 1,800-unit Article XI arrangement by offloading a stake in 97 buildings that are also predominantly located in Upper Manhattan, spanning six different portfolios. The firm intended to sell a 49.9 percent share, which would appraise the deal at $700 million.
For Mayweather, who hails from Michigan, this venture into affordable housing resonates deeply on a personal level.
“This purchase holds deep emotional significance for me and my family,” the celebrity athlete remarked in a statement. Reflecting on his childhood, Mayweather has previously recounted living "seven deep" in a one-bedroom apartment in New Brunswick, New Jersey.
“When people see what I have now, they have no idea of where I came from and how I didn’t have anything growing up,” he shared in a 2007 interview with Mercury News.
The boxing icon has not shied away from the New York real estate scene in recent years. According to a podcast he participated in during 2022, the 15-time world champion has invested in nine skyscrapers in partnership with office powerhouse SL Green and is also involved in SL Green’s casino proposal in Times Square.
Following the pandemic, Black Spruce has emerged as one of the city’s prominent rental landlords, amassing a portfolio boasting 4,000 units.
The firm has engaged in high-stakes partnerships, including a noteworthy $1.8 billion deal for 1,766 units across six rental buildings, as well as the acquisition of the iconic American Copper Buildings, which are twin luxury towers situated in Murray Hill, offering picturesque views of the East River.
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